H-0653.1  _______________________________________________

                          HOUSE BILL 1446

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Morris, DeBolt, Eickmeyer, Veloria, Haigh, Linville, Rockefeller, Hatfield, Doumit, O'Brien, Conway, Santos, Murray, Lantz, Wolfe, Stensen, Benson, Ruderman, Kessler, Wood and Lovick

Read first time 01/25/1999.  Referred to Committee on Economic Development, Housing & Trade.

Providing tax incentives to encourage job training in distressed areas.

    AN ACT Relating to providing tax incentives to encourage job training for newly hired production employees in distressed areas; adding a new section to chapter 82.04 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  It is the intent of the legislature to provide a tax incentive program to encourage the hiring of dislocated workers in distressed areas by allowing employers in distressed areas to take business and occupation tax credits for expenses related to providing job training for newly hired production employees in distressed areas.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) There may be credited against the tax imposed by this chapter, the value of state-approved, employer-provided or sponsored job training services designed to enhance the job-related performance of newly hired production employees, for businesses located in eligible areas as defined in RCW 82.62.010.

    (2) The value of the state-approved, job training services provided by the employer to the employee, without charge, shall be determined by the allocation of the cost method using generally accepted accounting standards.

    (3) The credit allowed under this section shall be limited to an amount equal to the value of the state-approved, job training services determined under subsection (2) of this section.  The credit may be taken in the tax year following the provision of the job training services.

    (4) Prior to claiming the credit under this section, the business must obtain approval of the proposed job training service from the employment security department.  The employer's request for approval must include a description of the proposed job training service, how the job training will enhance the employee's performance, and the cost of the proposed job training.

    (5) The employee being trained for which a training tax credit is taken must remain on the payroll of the employer a minimum of twelve months after the training.  The employee must have been a resident of the county in which the employer is located and not been employed at the time of beginning employment with business.

    (6) This section only applies to training in respect to eligible business projects for which an application is approved on or after June 30, 1999.

    (7) "Production employees" as used in this section refers to nonmanagerial employees earning, or to earn as a result of the training, a minimum of eight dollars per hour.

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